Henry Schein, Inc. HSIC recently entered into an agreement to acquire Acentus, a national medical supplier that specializes in delivering Continuous Glucose Monitors (CGMs). Henry Schein anticipates the transaction to be neutral to 2024 non-GAAP earnings per share and accretive thereafter. The transaction is expected to be completed in the first quarter of 2025. Financial terms have not been disclosed.
HSIC’s Likely Stock Trend Following the News
Following the announcement, shares of HSIC moved south 1.5% to $73.73 yesterday. The company is gaining a high level of synergies from its strategic acquisitions within the homecare medical supplies space. Henry Schein acquired Prism Medical Products, LLC, in 2021, and Shield Healthcare and Mini Pharmacy in 2023. With the latest acquisition of Acentus, Henry Schein’s homecare medical products platform will now have an annual revenue base of approximately $350 million. Accordingly, we expect market sentiment to turn in favor of HSIC in the upcoming days.
HSIC currently has a market capitalization of $9.19 billion. Estimates for 2024 earnings have moved north 0.6% to $4.77 in the past 30 days. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 2.85%.
More on HSIC’s Acquisition Agreement
As health care in the United States is increasingly being provided in home-based settings, Henry Schein’s strategic acquisition of Acentus aims to expand its offerings to meet the growing demand.
With the latest acquisition, Henry Schein expects to strengthen its position nationally in the home medical supply market and better serve its valued customers, including clinics, physician practices, health systems, and ambulatory surgery centers.
After the transaction is closed, Acentus’ founders — Brett Carroll, Todd Cianfrocca, Greg Duvall and Julio Valdivia — will join Henry Schein. For investors’ information, Acentus has annual revenues of approximately $35 million and is headquartered in Tampa, FL.
Industry Prospects Favor HSIC
According to a Grand View Research report, the global home healthcare market was valued at $390.24 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.96% from 2024 to 2030. Key factors contributing to the market growth include rising demand for cost-effective alternatives to curb rising healthcare costs and growing penetration of the virtual and remote care industry.
Other Recent Developments by HSIC
Last month, the company launched Henry Schein Marketplace, a new online service offering more than 8,000 non-clinical products to dental customers.
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In the same month, the company’s dental software business, Henry Schein One, signed a partnership with Bridge to develop and launch axiUm Engage — a platform designed to streamline workflows for academic and dental care organizations. The collaboration is aimed at empowering dental schools and care organizations with better patient engagement tools and efficient data management.
HSIC’s Price Performance
In the past year, shares of HSIC have risen 6.2% compared with the industry’s 7.% growth.
HSIC’s Zacks Rank and Key Picks
HSIC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Globus Medical GMED and ResMed RMD. While ResMed sports a Zacks Rank #1 (Strong Buy) at present, Haemonetics and Globus Medical carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 1.8% compared with the industry’s 23.1% growth in the past year. Estimates for Haemonetics’ 2025 EPS have moved north 0.4% to $4.59 in the past 30 days.
Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 60.6% in the past year compared with the industry’s growth of 32.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
Estimates for ResMed’s fiscal 2025 EPS have risen 2.7% in the past 30 days. Shares of the company have surged 86.3% in the past year compared with the industry’s 32.1% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.
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